Charlie McConalogue (Donegal North East, Fianna Fail)
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Question 50: To ask the Minister for Public Expenditure and Reform the discussions he has had with public sector unions and other organisations prior to the publication of the Public Service Pensions (Single Scheme) and Remuneration Bill 2011; and if he will make a statement on the matter. [28523/11]

Brendan Howlin (Wexford, Labour)
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Extensive consultations on the proposed single public service pension scheme, which forms the main part of the Bill to which the Deputy refers, have taken place since early 2010 between officials of my Department and public service staff representatives. In particular, my officials have met to discuss the proposed scheme with the ICTU public services committee, which includes representatives of AHCPS, ASTI, CPSU, IMO, IMPACT, INMO, INTO, POA, PSEU, SIPTU, TUI and UNITE, as well as with the Irish Hospital Consultants Association, the Irish Dental Association, the Psychiatric Nurses Association and representative organisations for personnel in the Defence Forces and An Garda Síochána. In total there have been more than 20 meetings between my officials and staff representatives in connection with the proposed single scheme.

As Minister for Public Expenditure and Reform, I meet frequently with unions representing public servants and other workers. With specific regard to the proposed single scheme in the public service, following the publication of the Bill, I met last week with a deputation from the three teacher unions to hear their concerns. Consultations on the proposed new scheme have also taken place between my Department and other Departments, including by way of an interdepartmental working group which examined the issues arising prior to the original announcement of our intention to bring forward a single scheme in budget 2010.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I thank the Minister for his reply. I welcome his indication that there has been a considerable degree of consultation with staff representatives, particularly in view of the initial reaction by the teacher unions when the proposal emerged. We all agree there must be a comprehensive single scheme for the public service, but has the Minister considered all the implications of a switch from linking pensions to inflation as opposed to salary increases? In recent years, for example, inflation has risen while salaries in the public service have decreased. In that situation, linking to inflation would mean those in receipt of pensions would be entitled to increases while those continuing in service would suffer reductions. I intend to table amendments on Committee Stage of the Bill to provide for a hybrid scheme which would balance these two positions. Over a period of 40 years the balance may swing from one side to the other. Instead of coming down on one side, there must be a middle ground in the legislation.

Brendan Howlin (Wexford, Labour)
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I look forward to a detailed discussion of these issues on Committee Stage. I hope to introduce Second Stage next week and to get through it quickly so we can have a more protracted Committee Stage debate to tease out the details. The only provision in the published Bill that would impact on already retired public servants is the possibility of changing from a linkage to the salary associated with the last post held to a linkage with the consumer price index, CPI. It is important to note that the new arrangement will act as a valve in that payment can be increased in accordance with increases in the CPI but cannot be decreased if the CPI goes down. It is an enabling provision which cannot be operated until at least the completion of the Croke Park agreement in 2014. There is merit in what the Deputy proposes and I will consider it between now and Committee Stage.

Seán Fleming (Laois-Offaly, Fianna Fail)
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Will the Minister confirm whether this pension scheme will apply to local authorities and other public sector bodies? He mentioned county managers earlier. There are enormous inconsistencies in the Croke Park deal in terms of rationalising technology and payroll processes. I would not like to see another PPARS situation arising out of all the differences at local level. Those differences must be ironed out before we seek to rationalise.

Brendan Howlin (Wexford, Labour)
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The scheme refers to all public servants. Civil servants, non-commercial semi-State employees, members of the Garda Síochána, the Army, the Oireachtas and the Judiciary will be encompassed within the single pension scheme.